Europe Direct Selling Report 2013

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3 Table of Contents (1 of 2) 1. MANAGEMENT SUMMARY 2. EUROPE: REGIONAL Breakdown of Global Direct Selling Revenues, by Region, incl. Europe, 2012 Breakdown of Global Direct Selling Revenues, by Countries, incl. 3 Top European Markets, in %, 2012 Direct Selling Market Sales, in EUR billion, Breakdown of Direct Selling Revenues, by Product Categories, 2012 Top 30 Countries by Direct Selling Revenues, in EUR million, 2012 Top 30 Countries by Number of Direct Selling Representatives, in thousands, CENTRAL EUROPE 3.1 GERMANY (TOP COUNTRY) f Breakdown of Direct Selling Orders, by Type, in %, 2012 Alternative Business Channels Used Parallel to Direct Selling, in % of Direct Selling Companies, 2012 Number of Direct Selling Representatives, in thousands, Breakdown of Social Media Activities of Direct Selling Companies, in %, AUSTRIA Number of Direct Selling Representatives, in thousands, Top 3 Direct Selling Companies, by Market Share, in %, SWITZERLAND Number of Direct Selling Representatives, in thousands, Top 3 Direct Selling Companies, by Market Share, in %, WESTERN EUROPE 4.1 FRANCE (TOP COUNTRY) Breakdown of Direct Selling Market Sales, by Activity Sector, in %, 2012 Breakdown of Direct Selling Retail Sales by Sales Methods, in %, 2012 & 2011 Number of Direct Selling Representatives, in thousands, 4.2 UK (TOP COUNTRY) Breakdown of Direct Selling Market Sales, by Product Segments, in %, 2012 Breakdown of Direct Selling Retail Sales by Sales Methods, in %, 2011 & ITALY Direct Selling Retail Sales, in EUR million, Direct Selling Revenues of the DSA Members, in EUR million, H & H Direct Selling Revenues of DSA Members, by Product Category, H vs. H1 2013, and in % Year-on-Year Change 4.4 PORTUGAL Leading Direct Selling Companies, by Market Share, in %, SPAIN 5. EASTERN EUROPE 5.1 RUSSIA (TOP COUNTRY) Direct Selling Market Trends, 2012/2013 Direct Selling Retail Sales, in EUR million, Direct Selling Retail Sales of the DSA Members, in RUB billion, Breakdown of Direct Sales, by Product Category,

4 Table of Contents (2 of 2) 5. EASTERN EUROPE (CONT.) 5.1 RUSSIA (TOP COUNTRY) (CONT.) Breakdown of Direct Selling Customers, by Age Groups, in %, 2011 & 2012 Share of Consumers Buying Direct Selling Products, by Male and Female, in %, 2012 Breakdown of Customers in Direct Selling, by Monthly Income, CZECH REPUBLIC (TOP COUNTRY) Breakdown of Direct Selling Market Sales by Players, by Oriflame and Avon and Other Direct Selling Companies, in %, LATVIA Direct Selling Market Sales of DSA members, in EUR million, 2011 & 2012 Number of Direct Selling Representatives, in thousands, 2011 & LITHUANIA Direct Selling Market Sales of DSA Members, in LTL million, 2011 & POLAND 5.6 ROMANIA Direct Selling Market Sales, in RON million, Breakdown of Direct Selling Market Sales, by Product Categories, in %, 2012 Breakdown of the Beauty and Personal Care Direct Selling Market, by Players, in %, SLOVAKIA Leading Direct Selling Companies, by Market Share, in %, TURKEY Direct Selling Market Sales, in TRY million, Breakdown of Direct Selling Market Sales, by Product Categories, in %, 2012 Breakdown of Direct Selling Market Sales by Direct Selling Methods, in %, 2011 & EASTERN EUROPE (CONT.) 5.9 UKRAINE Direct Selling Market Sales, in UAH million, Direct Selling Market Sales, in UAH billion, and Remuneration of Direct Selling Representatives, in UAH million, H & H Year-on-Year Growth of Direct Selling Product Categories, in %, First 9 Months of 2013 Breakdown of Direct Selling Market Sales by Product Categories, in %, 2012 Breakdown of Direct Selling Market Sales by Players, by Oriflame and Avon and Other Direct Selling Companies, in %, SCANDINAVIA 6.1 FINLAND Breakdown of Direct Selling Market Sales by Product Categories, in %, NORWAY Breakdown of Direct Selling Market Sales by Product Categories, in %, SWEDEN Breakdown of Direct Selling Market Sales by Product Categories, in %, Direct selling players Top 50 Direct Selling Companies, by Global Net Sales, in USD million, , Ranked by 2012, and in % Year-on-Year Change Profile of Amway Profile of Avon Products, Inc. Profile of Herbalife Ltd. Profile of Vorwerk & Co. KG Profile of Natura Cosmeticos SA Profile of Mary Kay Inc. Profile of Tupperware Brands Corp Profile of Nu Skin Enterprises, Inc. Profile of Oriflame Cosmetics SA Profile of ViSalus - 4 -

5 Samples SAMPLE OUTPUT: STATISTIC SAMPLE OUTPUT: COMPANY PROFILE RESEARCH ON INTERNATIONAL MARKETS We deliver the facts you make the decisions RESEARCH ON INTERNATIONAL MARKETS We deliver the facts you make the decisions International Trends Sales Shares Products Users / Shoppers The number of mobile Internet users in Japan is estimated to increase to 93 million in 2016, up from 66 million in Japan: Mobile Internet Users, in millions and in % of Country Population, f Players International Trends Sales Shares Products Users / Shoppers In Q3 2012, multi-channel mass merchant Magazine Luiza generated 12% of its total revenues through online sales. Brazil: Profile of Magazine Luiza Players Name of Company Magazine Luiza S.A. in millions % 69% 63% 58% 93 52% 87 47% 44% f 2013f 2014f 2015f 2016f 80% 70% 60% 50% 40% 30% 20% 10% 0% in % of Country Population Headquarters Major Online Shop Company Type Product Range Financial Data E-Commerce related News Franca, Sao Paulo, Brazil Multi-Channel Retailer Mass Merchant Consolidated gross revenues of BRL 2.2 billion in Q3 2012, up by +15.2% from Q Online sales of BRL 269 million in Q3 2012, up by +25.5% from Q Magazine Luiza launched its improved online shop in November 2012, which aims at ensuring customer responsiveness through close contact. On the new website, product categories are organized by color and stores. Furthermore, customers receive recommendations based on their browsing and purchasing behavior. The new website also features higher browser and mobile device compatibility and claims to be faster than any other E-Commerce site in Brazil. In November 2012, Magazine Luiza diversified its online offering by opening a virtual florist. Besides buying flowers for specific categories such as birthdays and apologies, customers can order additions such as chocolates and books to go with the flowers. In Q3 2012, online sales accounted for 12% of total revenues of Magazine Luiza. Number of Mobile Internet Users Percentage of Country Population Definition: mobile phone users of any age, who access the Internet from a mobile browser or an installed application at least once per month; excludes SMS, MMS, IM Source: to be mentioned in the report Source: to be mentioned in the report 3 18 SAMPLE OUTPUT: RANKING SAMPLE OUTPUT: TRENDS RESEARCH ON INTERNATIONAL MARKETS We deliver the facts you make the decisions RESEARCH ON INTERNATIONAL MARKETS We deliver the facts you make the decisions International Trends Sales Shares Products Users / Shoppers Morocco (49%) was the African country with the highest Internet penetration in December 2011, followed by the Seychelles and Tunisia. Africa: Top Internet Countries, Rank 1-10, by Internet Penetration, in % of Population, December 2011 Players International Trends Sales Shares Products Users / Shoppers French online travel revenue (+16%) grew stronger between January and September 2011 than French B2C E-Commerce revenue (+12%). France: Online Travel Trends, 2011 Players Morocco Seychelles Tunisia Reunion (FR) Nigeria 29,0% 38,0% 36,3% 36,0% 49,0% Between January and September 2011, online travel revenue in France increased by +16%, which is a stronger growth than that of B2C E-Commerce as a whole (+12%). Growth in French online travel was mainly driven by Voyages-sncf.com, as reported by L Echo Touristique. In Q1 2011, travel sales had increased by +12% and +20% in Q2, followed by a growth of +15% in Q3 2011, despite the financial crisis and the Arab Spring. In total 2011, online travel sales in France amounted to EUR 12 billion, up from EUR 10.7 billion in The Internet was very popular among French travelers in % of them gather information online before booking a trip. 56% of French travelers bought travel services online, while 22% exclusively purchased their travel services online, according to Fevad. Cape Verde Egypt Kenya 28,8% 26,4% 25,5% The average travel-related online shopping basket was EUR 291 in France, three times higher than the average E- Commerce basket in the country. 35% of French online travel shoppers bought train tickets and 23% booked tickets for other transportation services. A further 31% also made online reservations for hotels and other accommodations, while 20% used the Internet to find rental services. Mauritius 24,8% Furthermore, Travel and Holiday Accommodation was the leading sector in French B2C E-Commerce in 2011, reaching higher sales than the next four top sectors combined. Sao Tome & Principe 17,3% 0% 25% 50% 75% After Malaysia, France was the market with the second highest growth in reach of airlines category, reaching 12.2% growth in February Source: to be mentioned in the report Source: to be mentioned in the report

6 Methodology General Methodology of our Market Reports: The reports include the results of secondary market research: By using various sources we ensure maximum objectivity for all obtained data. As a result companies get a precise and unbiased impression of the market situation. Cross referencing of data was conducted in order to ensure validity and reliability. The reports contain a Management Summary, summarizing the main information provided in each chapter. Besides providing information on the specific topic, every chart contains an Action Title, which summarizes the main statement of the chart and a Sub Title, which gives information about the country, the topic, the unit or currency, and the time period the dataon the chart refers to. Furthermore, the source of information and its release date are provided on every chart. It is possible that the information included in one chart is derived from several sources. Then, all sources are mentioned on the chart. If available, additional information about the data collection, for example the time of survey and number of people asked, is provided in the form of a note. In some cases, the note (also) contains additional information needed to fully understand the contents of the respective data. When providing information about amounts of money, local currencies were mostly used. When referencing them in the Action Title, the EUR values are also provided in brackets. The conversions are always made using the average currency exchange ratefor the respective time period. Should the currency figure be in the future, the average exchange rate of the past 12 months is used. The reports include mainly data from the last 12 months. The exact publication dates are mentioned in every chart. Methodology for our Direct Selling Market Reports: The Europe Direct Selling Report 2013 by ystats.com is produced in a holistic approach to contain relevant information about recent market trends, sales figures, shares, products and important players in European Direct Selling. This report covers the European direct selling market. It takes into account a wide definition of direct selling, including pure direct selling companies and direct selling companies that also offer products and services through other channels. All major European countries are covered, while data availability varied across the markets. Besides country data, regional data is also included. Selected European key markets, based on sales, include Germany, the UK, France and Russia. These countries are represented in a larger scope. Cross referencing of data was conducted in order to ensure validity and reliability. Major trends in the European direct selling markets, sales figures, main direct selling product categories and other types of information regarding direct selling were included. Major players in the direct selling market were identified and presented. Players include pure direct selling companies and direct sellers also selling their products online. In total, the 50 largest direct selling companies worldwide are listed by global net sales and the 10 leading that also operate in Europe are profiled. In the player profiles, name of company, country of origin, main homepage, headquarters, positioning/ product range, revenue/ financials, main European countries, total number of direct sellers, main sales method, main compensation structure and news are listed. Concerning revenue/ financial data, the latest data available was used, while news contain general news, strategic news, mergers and acquisitions and expansion news. Most data used in this report was published during the previous 12 months

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8 Selected Reports Report Publication Date Price (excl. VAT)* Europe B2C E-Commerce Report 2013 September ,950 Europe Clothing B2C E-Commerce Report 2013 July ,450 Europe Online Payment Methods 2013-First Half 2013 May ,450 Global B2C E-Commerce Sales & Shares Report 2013 July ,950 Global B2C E-Commerce Market Report 2013 March ,450 Global Online Payment Methods First Half 2013 April ,450 Global Mobile Payment Methods 2012 October ,450 Global Mobile and M-Commerce Report 2012 November ,750 Asia B2C E-Commerce Report 2013 February ,450 Latin America B2C E-Commerce Report 2012 December ,450 Middle East Internet & B2C E-Commerce Report 2012 June ,765 Africa Internet & B2C E-Commerce Report 2012 May ,415 * Single User License Selected References Internet, Retail, Consulting, Finance and Other Companies Internet Companies: Retail Companies: Finance Companies: Google OTTO Group Credit Suisse Amazon Costco Morgan Stanley ebay Tchibo direct Bank of America Merrill Lynch Avira Diesel Goldman Sachs Skype Citigroup Digital River Oppenheimer & Co. First Data Citrix Online Wirecard 1 & 1 Consulting Companies: Other Companies: Skrill / Moneybookers Deloitte BASF Deutsche Telekom Boston Consulting Group Red Bull CyberSource Accenture Lego bwin Interactive Entertainment Bain & Company Beiersdorf Brightcove Xerox - 8 -

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